Mifid II Update, UK Publication of Feedback to 2015 Consultation on Transposition

The Commission would like to draw attention to the recent publication of HMT’s feedback report on its consultation on transposition of MIFID II. https://www.gov.uk/government/consultations/transposition-of-the-markets-in-financial-instruments-directive-ii

In particular firms are asked to note the determination of the UK not to implement the branching requirement as outlined in Article 39 of the Directive. This means that Guernsey firms will continue to be able to access the UK market through its national regime:  the exclusion for “overseas persons” in Article 72 of the FSMA (Regulated Activities) Order 2001, which includes exclusions for activities carried on in the context of a “legitimate approach” or carried on ”with or through” an authorised or exempt UK person.  

The Commission responded to the above of the consultation arguing in favour of the above outcome.  

Whilst the Commission engaged as early as 2013 with industry on potential approaches to MIFID II including equivalence, the last formal occasion was as part of the Revision of Laws consultation process in early 2015.  As a result of the one year delay in implementation of MIFID II in the EU until 1^st January 2018; the uncertainty surrounding the UK position on MIFID II given the referendum result of June 23^rd, 2016; and, until recently, uncertainty regarding the UK approach to implementing MIFID II branching requirements, has been little formal communication on the topic of MIFID II from the Commission in the last two years.  The Commission therefore proposes to hold a short series of presentations to provide an update to interested parties, dates and times for which will be published shortly.